Consolidating debt into your mortgage good idea
Pro: Deduct for Savings Both student loan and mortgage interest payments are tax deductible.However, your interest payments via a student loan may not qualify if you had to take a deferment or forbearance during the year, or if you make over ,000 per year (or 0,000 as a married couple).Please do your homework and let us know if you have any questions or concerns.
The money from this new loan can then be used to pay off your student loan debt.
You’re better off exploring federal repayment programs or student loan refinancing to make payments more manageable.
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Pro: Lower Interest Rate According to HSH.com, the interest rate of a 15-year fixed mortgage averages 3.32%, while Direct Subsidized student loans disbursed after July 1st, 2015 have an interest rate of 4.29%.
In this case, consolidating student loans into a mortgage would mean savings in interest payments.